China Gazes Over U.S. 'Fiscal Cliff'

By

Tom Orlik

Nov. 6, 2012 2:36 p.m. ET

China's main appearance in the U.S. election battle was Mitt Romney's threat to name the country a currency manipulator. But the real threat to the Asian giant is from Washington's impending "fiscal cliff."

In the absence of a political agreement after the election, hefty automatic spending cuts will kick in on Dec. 31. The Bush-era tax cuts are set to expire on the same day. According to the International Monetary Fund, driving off the fiscal cliff would mean a tightening of the public purse strings equivalent...